Playtech H1 2016 profits hit by significant sterling impacts

Significant sterling fluctuations have impacted Playtech Plc’s H1 2016 profit results, despite the FTSE-listed gambling technology provider recording continued top-line metric growth across its divisions.

Presenting its H1 trading update (period ending 30 June) Playtech would declare a group EBITDA increase of 27% to €143 million (H1 2015: €112 million) on group revenues of €337 million (up 18% on H1 2015: €286 million).

Despite continuing its strong 2016 revenue and earnings momentum, Playtech’s half-year profit results would be impacted by a ‘significant translation impact on sterling cash balances’. The company would declare an adjusted Net-Profit of €79.5 million.

Playtech H1 2016 Financial Overview 

In spite of its H1 currency woes, Playtech governance stated that the company had made significant progress during the period. Focusing on ‘lock-in’ and ‘omni-channel’ competencies the gambling technology provider had secured new customers in PokerStars, SunBets and Fortuna Entertainment.

Playtech governance was further pleased to announce that it had been able to boost its industry product portfolio during the period by completing the acquisitions of betting systems provider Best Gaming Technology (BGT) and online casino content provider Quickspin.

Alan Jackson, Chairman of Playtech, commented on H1 2016 results

“Given this progress, we remain confident of strong growth in 2016 and beyond.”

“The Gaming division continues to deliver strong growth, driven by our industry-leading Casino offering. We have “locked-in” future growth with important new licensees signed and significant contracts renewed. Seven of our top 10 licensees are now on contracts which have at least three years remaining and our pipeline of new licensees and structured agreements remains strong. First half results from our Financials division reflect the full-impact of the transitioning of the business and improvements made due to regulatory changes with Markets now having the right platform for sustainable growth.

“We have continued to execute on our M&A strategy with the acquisitions of BGT and Quickspin announced so far in 2016. We are pleased to announce the adoption of a progressive dividend policy, reflecting our confidence in the Group’s anticipated growth and cash generation. We are also pleased to announce the return of €150m to shareholders through a special dividend with no impact on our M&A capabilities, enabled by our high cash balances and strong cash generation, whilst maintaining an efficient and flexible balance sheet.

Closing its H1 2016 performance, Playtech governance would announce a €150 million dividend payout to shareholders, representing a 46c per share as special dividend on Dec. 6, and also hiked its interim dividend by 15 % to € 11c